Cryptocurrencies Rip Higher As Dip-Buying Replaces Panic-Selling

Yesterday’s triple-legged panic-selling across the crypto-space, which saw Bitcoin and Ethereum down 30 and 40% respectively at their worst ended around 10amET and while the mainstrea media was happy to declare (once again) the death of Bitcoin et al., the entire crypto world has soared since – almost erasing the entire day’s losses.

Across the board, cryptocurrencies are soaring…

Which has pushed Bitcoin, Ethereum, Ripple, and Litecoin back to almost unchanged from Thursday…

Interestingly the collapse in cryptos appears to have been stalled by the limit-down halt in CME Bitcoin Futures – ironic really given the mainstream view that futures trading would be the end of cryptos.

Now, let’s not get too carried away as Bitcoin remains well off its record highs, but on the other hand a 45% bounce off the lows is nothing to shrug off…

News yesterday of Mike Novogratz delaying the launch of his crypto hedge fund raised anxiety among some but he tweeted overnight to clarify his bullish perspective…

Galaxy is building out a full fledged crypto merchant bank. I have over 30 percent of my net worth in crypto assets. We have venture bets, ICOs, tokens, investments in funds, mining and advisory. We also trade very actively. We are making a large long term bet on crypto.

To be clear, we delayed launching a hedge fund with outside investors capital last week because we didn’t like market conditions for new investors. In no way does it mean we are less bullish the crypto markets.

A lot of digital ink was spilled yesterday to explain the carnage – from Litecoin’s founder selling out to tax bills to government conspiracies to kill the crypto-craze. We remind readers that these kind of collapses are par-for-the-course for Bitcoin…Bitcoin has crashed by over 30% in every quarter since its inception…

In fact, drawdowns are very much business as usual…

Perhaps John McAfee’s tweet sums up the day best…

OK Everyone … stop panicking about the across the board dip in cryptocurrencies. It’s Christmas for f-ck sake. The costliest time of the year. People are cashing in to buy presents which no-one wants or ever uses but pretends to be thankful for. After Xmas – big boom.